The Australian federal government has introduced the Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill, aiming to safeguard award-wage workers’ penalty rates during negotiations. If passed, this legislation would ensure that approximately 2.6 million workers across sectors including hospitality, retail, and care retain their rights to higher pay for work performed outside traditional hours, such as weekends and late nights.
Currently, for instance, a cafe worker earns $40.85 per hour on Saturdays and $47.65 on Sundays under penalty awards. The proposed bill seeks to prevent the Fair Work Commission from altering these award rates if it results in a reduction of overall take-home pay for workers. The government’s initiative follows a proposal from the Australian Retailers Association advocating for certain workers to forfeit penalty rate entitlements in exchange for a substantial wage increase of up to 35%. This proposal is still under consideration by the Fair Work Commission.
Minister for Employment and Workplace Relations Amanda Rishworth emphasised the bill as a “safety net” intended to protect millions of Australians who depend on penalty and overtime rates to make ends meet. She highlighted the critical importance of ensuring that those relying on modern awards for weekend and holiday work have their wages legally protected.
The legislation, introduced during the first sitting week of Parliament, is one of the Labor government’s priority initiatives, and negotiations with the Greens and Coalition are ongoing to facilitate its passage through the Senate. Opposition employment spokesman Tim Wilson remarked that while the Coalition supports penalty rates, small businesses have voiced concerns over not being properly consulted regarding this legislation.
Prime Minister Anthony Albanese also met with workers impacted by these changes at Parliament House, recalling his own experience in hospitality. He reiterated that protecting penalty rates is crucial for providing cost-of-living relief and ensuring Australians can earn and retain more of their income. A worker conveyed her reliance on penalty rates, indicating they constitute a significant portion of her income. She remarked that without them, she would need to juggle multiple jobs to manage her financial obligations.
In summary, the bill aims to fortify the income security of many Australian workers by enshrining their rights to penalty rates, which are essential for their financial stability and quality of life.